Bouygues Group presentation Q1 2016 BUILDING THE FUTURE IS OUR GREATEST ADVENTURE 1
This presentation contains forward-looking information and statements about the Bouygues group and its businesses. Forward-looking statements may be identified by the use of words such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Forward-looking statements are statements that are not historical facts, and include, without limitation: financial projections, forecasts and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance of the Group. Although the Group’s senior management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Group, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and undue reliance should not be placed on such statements. The following factors, among others set out in the Group’s Registration Document ( Document de Référence ) under the section headed Risk factors ( Facteurs de risques ), could cause actual results to differ materially from projections: unfavourable developments affecting the French and international telecommunications, audiovisual, construction and property markets; the costs of complying with environmental, health and safety regulations and all other regulations with which Group companies are required to comply; the competitive situation on each of our markets; the impact of current or future public regulations; exchange rate risks and other risks related to international activities; risks arising from current or future litigation. Except to the extent required by applicable law, the Bouygues group makes no undertaking to update or revise the projections, forecasts and other forward-looking statements contained in this presentation. May 2016 2
1. BOUYGUES GROUP PRESENTATION 3 MahaNakhon Tower – Bangkok, Thailand
PROFILE 4
Who we are (1/2) The Bouygues group provides products and services that meet essential needs (housing, transportation, information, communication, etc.), thereby driving progress for society 5
Who we are (2/2) A diversified industrial group Key figures in 2015 3 businesses with different cycles 120,254 employees € 32,4bn sales A stable share ownership structure a € 941m current operating profit SCDM Foreign 20.4% shareholders € 403m net profit attr. to the Group 37.8% 21.4% Employees 20.4% € 2.6bn net debt Other French shareholders 6 (a) At 31 December 2015: 345,135,316 shares and 489,224,737 voting rights. SCDM is a company controlled by Martin and Olivier Bouygues.
An industrial group acting in three markets Property (1956) Transport infrastructure (1986) Building & Civil Works (1952) 100 % 100 % 96.6 % CONSTRUCTION ACTIVITIES 28.3% as of 28 January 2016 (2006) TELECOMS ( 1994) (1987) MEDIA 90.5 % 43.7 % 7 As of 31 December 2015
Portfolio management as industrials entrepreneurs Entering new businesses under good conditions ■ Market with long-term growth opportunities Colas / Screg in 1986 ■ Regulatory or technological changes TF1 in 1987 ■ Favorable financial conditions Bouygues Telecom in 1994 Alstom in 2006 ■ Ability to bring managerial skills Disposing of businesses under the following circumstances ■ Structural reduction of free cash-flow generation due to lack of competitiveness, or… Maison Bouygues in 1990 market no longer offering long term growth opportunities Bouygues Offshore in 2002 Saur in 2005 ■ Better opportunities for use of proceeds Eurosport International and Cofiroute in 2014 ■ Acceptance that Bouygues is no longer the best shareholder 8
A world leader in construction activities A world leading contractor in The leading French property A world leader in construction building & civil works, energy developer and maintenance of transport and services infrastructure A recognized expertise at every stage of a A pure player acting in both residential and Key competitive advantage thanks to vertical project from design to construction, operation, commercial real estate development integration with a widespread industrial maintenance, and financing arrangement footprint (aggregates, emulsions, asphalt mix, Developer and urban operator with a strong bitumen...) A leader in sustainable construction expertise in green properties Construction activities 3.2% current op. margin € 26.0bn sales € 831m current op. profit 2015 key figures 9
The French leading media group and a major actor in Telecom The leading private television group in A major actor of the fixed and France mobile French telecom market Bouygues Telecom aims to bring the benefits TF1 is an integrated media group that provides of digital technology to as many people as a unique offering on all media possible TF1 2015 key figures Bouygues Telecom 2015 key figures € 2.0bn sales € 4.5bn sales € 158m current operating profit € 752m EBITDA 7.9%current operating margin 19.7% EBITDA margin 10
KEY STRENGTHS 11
Strong and distinctive corporate culture Men and women sharing the same values within the Group : respect, trust and fairness Construction is a “good management school” Project management skills and empowerment Strong mobility within the Group Pragmatic – Cautious – Opportunistic – Entrepreneurial 12
Targeted international expansion International expansion started 50 years ago Bouygues operates in growing countries with a low-risk profile Northern and Central Europe Russia: -0.6% 40% UK: +2.2% Switzerland: +1.3% Poland: +3.5% North America 27% US: +2.8% Canada: +1.7% 1% Southern Europe: +1% Middle East: +3.8% 1% 19% Asia/Oceania: +5.4% 10% Africa: +4.3% 2% South America: -0.3% 13 Green: region classified A by Coface (low risk) Construction businesses: regional sales as a proportion of total x% 2016 economic growth (source: IMF) Orange: region classified B and C by Coface (medium to high risk) international sales in 2015
Open innovation driving performance Collaborative innovation process with external partners Anticipate on future customers’ needs to bring Improve our working processes and protect Create value for our customers our employees progress and well being to society Wattway, the world’s 1 st solar road developed with Ines a Widespread adoption of the BIM Exosqueleton developed by Colas and RB3D (Building Information Management) Intelligent and collaborative work spaces to bring flexibility IoT offering services based on LoRa technology TF1 innovation division 14 (a) The French National Solar Technology Institute
Ability to adapt Ongoing adaptation thanks to highly variable cost structure in the construction businesses Cost structure driven by project Flexibility of personnel costs: sub-contracting, temporary workers, ability to hire employees for the duration of the contract Between 60% to 100% variable costs depending on countries and projects Long experience to manage economic cycles Ability to deeply transform businesses facing structural market changes (Bouygues Telecom, TF1,…) 15
STRATEGIC PRIORITIES 16
Positioning on growing markets underpinned by solid demand Growing infrastructure needs for construction activities Drivers : demographic growth, urbanization, saturated and aging infrastructures 1 billion more people in the world by 2030 a 2 billion people concentrated in 600 cities, and 75% of these cities in emerging countries b by 2025 Development of new offerings arising from environmental constraints 40% increase of greenhouse gas effects by 2030 c From the building to the sustainable city Conciliate the energy efficiency of the buildings and infrastructures with the improvement of the living conditions ♦ Exponential growth of digital uses in the telecoms and media Multiplication of screens and objects constantly connected to internet Bringing together the world of television and internet - New ways to consume contents 17 (a) Source: United Nations (b) Source: Mc Kinsey Global Institute (c) Source: United States Environment Protection Agency
Bouygues group's strategic priorities (1/2) Targets for the Group Market high value-added offers to customers and increasingly innovative services for the benefit of the greatest number of people Ensure regular free cash flow generation over the long term Create value for all its stakeholders 18
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